Office lettings in London dropped off 57% in the second
quarter of this year compared to the previous quarter, according to research by
Some 1.2m sq ft of office space was leased across central London
between April and June.
The average deal size in the second quarter was 8,160 sq ft
compared to 5,785 sq ft in quarter one of 2020.
Office availability in the second quarter rose by 8%, with 14.9m
sq ft available across central London. The greatest increase in availability
was in the West End, which was up by 15%. In the City, office availability rose
by 8% (5.3m sq ft).
“Our data from Q2 2020 has shown that demand for office space
has not disappeared, and with a number of deals already signed in July,
businesses continue to commit to future office space and look for opportunities
in the market,” said Shaun Dawson, head of insights at DeVono Cresa.
“As a result of the ongoing pandemic, we expect demand for
leasehold space to remain subdued compared with historical levels mixed with an
increased appreciation of flexible office space”.